Prepare the Journal entries and answer the following questions using the Job order Costing System. (50 points)

1. Purchased $800 Raw Materials on Credit.
2. The Factory requests $710 Direct Materials and $100 indirect Materials from the Raw Materials Warehouse
3. The Factory incurs $1300 of Direct Labor and $900 Indirect Labor
4. Overhead is applied at 150% of the Direct Labor Cost.
5. The Factory has the following Actual Overhead costs:

1.Depreciation $400

2.Other Overhead $550

6.Finished Goods worth $3500 are transferred to the Finished Goods Warehouse

7.Goods that Cost $2700 are sold for $5500.

8.What is the Gross profit for the month? Show your calculation.

9.If Selling and Administrative expenses are $2000 what is the net income?